Cray Announces Selected Preliminary 2017 Financial Results
January 16 2018 - 08:30AM
Global supercomputer leader Cray Inc. (Nasdaq:CRAY) today announced
selected preliminary 2017 financial results. The 2017 anticipated
results presented in this release are based on preliminary
financial data and are subject to change until the year-end
financial reporting process is complete.
Based on preliminary results, total revenue for 2017 is expected
to be about $390 million.
While a wide range of results remains possible for 2018 and
based on the Company’s preliminary 2017 results, Cray expects
revenue to grow by 10-15% for 2018. Revenue is expected to be about
$50 million for the first quarter of 2018.
“With a strong effort across the company and in partnership with
our customers, we completed all our large acceptances during the
fourth quarter,” said Peter Ungaro, president and CEO of Cray. “A
couple of smaller acceptances that we did not finish are now
expected to be completed early in 2018. While 2017 was challenging,
we’re beginning to see early signs of a rebound in our core market
and I’m proud of the progress we made during the year to position
the company for long-term growth.”
Based on currently available information, Cray estimates that
the impact of the Tax Cuts and Jobs Act (Tax Legislation) passed in
December 2017 will result in a reduction to the Company’s GAAP
earnings for the fourth quarter and year ended December 31, 2017 in
the range of $30-35 million. The large majority of this
charge is due to the remeasurement of the Company’s U.S. deferred
tax assets at lower enacted corporate tax rates. The charge
may differ from this estimate, possibly materially, due to, among
other things, changes in interpretations and assumptions the
Company has made, and guidance that may be issued. This charge has
no impact on the Company’s previously provided non-GAAP guidance.
Going forward, the Company does not expect an increase in its
non-GAAP tax rates as a result of the Tax Legislation.
About Cray Inc.Global supercomputing leader
Cray Inc. (Nasdaq:CRAY) provides innovative systems and solutions
enabling scientists and engineers in industry, academia and
government to meet existing and future simulation and analytics
challenges. Leveraging more than 40 years of experience in
developing and servicing the world’s most advanced supercomputers,
Cray offers a comprehensive portfolio of supercomputers and big
data storage and analytics solutions delivering unrivaled
performance, efficiency and scalability. Cray’s Adaptive
Supercomputing vision is focused on delivering innovative
next-generation products that integrate diverse processing
technologies into a unified architecture, allowing customers to
meet the market’s continued demand for realized performance. Go to
www.cray.com for more information.
Safe Harbor StatementThis press release
contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934 and Section 27A of the
Securities Act of 1933, including, but not limited to, statements
related to Cray’s financial guidance and expected operating results
and Cray’s ability to grow in the future. These statements involve
current expectations, forecasts of future events and other
statements that are not historical facts. Inaccurate assumptions as
well as known and unknown risks and uncertainties can affect the
accuracy of forward-looking statements and cause actual results to
differ materially from those anticipated by these forward-looking
statements. Factors that could affect actual future events or
results include, but are not limited to, the risk that Cray does
not achieve the operational or financial results that it expects,
the risk that changes to these preliminary results will be required
as a result of completing the financial reporting closing process
and financial audit, the risk that Cray will not be able to secure
orders for Cray systems to be accepted in the future when or at the
levels expected, the risk that the segments of the high-end of the
supercomputing market that Cray targets do not recover from the
current downturn as early or as completely as expected or at all,
the risk that the systems ordered by customers are not delivered
when expected, do not perform as expected once delivered or have
technical issues that must be corrected before acceptance, the risk
that the acceptance process for delivered systems is not completed,
or customer acceptances are not received, when expected or at all,
the risk that Cray is not able to successfully sell products and
services in the big data, artificial intelligence and commercial
markets as expected or at all, the risk that Cray is not able to
expand and penetrate its addressable market as expected or at all,
the risk that the expense and/or effort to address Cray systems at
customer sites that have issues with third party components or with
Cray components, including issues related to the “Spectre” and
“Meltdown” processor security vulnerabilities, is material, the
risk that Cray is not able to successfully complete its planned
product development efforts in a timely fashion or at all, the risk
that government funding for research and development projects is
less than expected, the risk that new third-party processors and
other components for our systems are not available with the
anticipated performance, timing or pricing, the risk that Cray is
not able to achieve anticipated gross margin or expense levels and
such other risks as identified in Cray’s quarterly report on Form
10-Q for the period ended September 30, 2017, and from time to time
in other reports filed by Cray with the U.S. Securities and
Exchange Commission. You should not rely unduly on these
forward-looking statements, which apply only as of the date of this
release. Cray undertakes no duty to publicly announce or report
revisions to these statements as new information becomes available
that may change Cray’s expectations.
Cray is a federally registered trademark of Cray
Inc. in the United States and other countries.
Cray Media: |
Investors: |
Nick Davis |
Paul Hiemstra |
206/701-2123 |
206/701-2044 |
pr@cray.com |
ir@cray.com |
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